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Value Added Method for Measuring GDP
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Problem 10
Value Added Method for Measuring GDP
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11. Gross Domestic Product (GDP) and Consumer Price Index (CPI) / Value Added Method for Measuring GDP / Problem 6
Problem 6
What is a potential drawback of not using the value added method for GDP calculation?
A
It simplifies the calculation process.
B
It reduces the complexity of economic analysis.
C
It provides a more accurate measure of economic activity.
D
It may lead to double counting and overestimation of GDP.
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